Rail passengers set to benefit from EU compensation ruling

Rail passengers will be able to claim compensation of up to £125 if their
train is more than two hours late, because of bad weather or industrial
action following a landmark ruling by the European Court of Justice.

A walk-on return fare to Newcastle cost £301Photo: Christopher Pledger for The Telegraph

The EU ruling follows a case which originated in Austria where a passenger was denied compensation after the train operator claimed force majeure.

This could benefit passengers on a number of train operators operating under the Passenger Charter system, dating back to the 1990s, which allows them to refuse to pay out because of circumstances beyond their control like bad weather or industrial action.

Train operators who can benefit from this loophole, frequently buried in the small print of the charter, include First Great Western, Chiltern, South West Trains and Northern Rail.

However the court has ruled that compensation for delays must be paid irrespective of the cause.

The EU scheme would offer only a 25 per cent refund for delays between one and two hours and 50 per cent for a delay of more than two hours.

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With the Government pledging to cap the dearest one way ticket at £250, this means the most a passenger could get is £125.

But Britain's rail passengers could have to wait until next year before gaining new rights under the judgment which seeks to close one of the loopholes which can be used by train operators when they face compensation claims

Should the ruling come into force, it would mean all operators would be governed by the more passenger friendly rules of the Delay Repay scheme, which include key commuter lines including Southern and South Eastern.

Under Delay Repay, compensation must be paid out irrespective of the cause.

In the UK the current levels of compensation are generally higher with train operators, when they pay out, offering to refund half the cost of the ticket if a journey is delayed by more than 30 minutes and full repayment for delays of more than an hour.

However train operators are able to obtain compensation from Network Rail, the infrastructure company, when services are delayed by more than a minute.

The EU ruling was welcomed Phil Bennion, the Liberal Democrats transport spokesman in the European Parliament.

He said: "The EU courts are on the right track in standing up for the rights of the passengers."

"Force majeure appears to have been abused by train companies in the past, but now they will no longer be able to simply dismiss compensation claims as 'out of their control'.

"Hopefully this should put an end to train operators denying compensation because there are the wrong types of leaves on the line."

“Passengers who are delayed don’t care about the reason – lateness can affect their whole day. We think moving towards a straightforward compensation scheme, which pays out regardless of cause, will be fairer and simpler.”

A Department for Transport spokesman said: “UK domestic services are currently exempted from the requirements of article 17 of the Regulation.

"The current exemption expires on 3 December 2014 but it can be renewed. The Department is considering the implications of the judgment for the UK Rail Industry, and will take a view on its options in due course.”